Resolution - 2006-60RESOLUTION NO.2006-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, APPROVING A REIMBURSEMENT
AGREEMENT WITH THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF WEST COVINA AND THE
EXPENDITURE OF TAX INCREMENT FUNDS FOR THE
• DEVELOPMENT OF PUBLIC FACILITIES, AND MAKING
ASSOCIATED FINDINGS
WHEREAS, The Community Development Commission of the City of West Covina (the
"CDC") is the owner of certain real property consisting of approximately 27 acres located at
2100 S. Azusa, West Covina, CA (the 'Property"); and
WHEREAS, the Property was formerly owned by BKK Corporation and is immediately
adjacent to the site of the BKK Landfill which is a Class I and Class Il landfill; and
WHEREAS, the City desires to construct a publicly owned sports and recreation center
on the Property (the "Sports Park"), but is unable to obtain sufficient funds for the financing and
construction of the Sports Park, either through private or public financing methods; and
WHEREAS, the CDC is engaged in activities necessary to carry out and implement the
Redevelopment Plans for the West Covina Merged Redevelopment Project Area and the City
Wide Project Area ('Project Areas"); and
WHEREAS, in order to carry out and implement such Redevelopment Plan the CDC
proposes to enter into that certain Reimbursement Agreement (the "Agreement') with the City of
West Covina for land acquisition, financing and construction of the Sports Park; and
WHEREAS, pursuant to Sections 33445 and 33679 of the Community Redevelopment
Law (California Health and Safety Code Section 33000, et seq.), the CDC is authorized, with the
approval of the City Council after a duly noticed public hearing, to contribute tax increment
funds for the costs of land or the construction of buildings which are publicly owned,.both within
and outside the Project Areas; and
WHEREAS, a joint public hearing of the CDC and City Council on the proposed
Agreement was duly noticed in accordance with the requirements of Health and Safety Code
Sections 33445 and 33679; and
WHEREAS, the summary report meeting the requirements of Health and Safety Code
Section 33679, was available for public inspection consistent with the requirements of Health
and Safety Code Section 33679; and
WHEREAS, on June 29, 2006, the CDC and City Council held a joint public hearing on
the proposed Agreement, at which time the City Council reviewed and evaluated all of the
information, testimony, and evidence presented during the joint public hearing; and
WHEREAS, all actions required by all applicable law with respect to the proposed
Agreement have been taken in an appropriate and timely manner; and
WHEREAS, the City Council has reviewed the summary required pursuant to Health and
Safety Code Section 33679 and evaluated other information provided to it pertaining to the
findings required pursuant to Health and Safety Code Section 33445 and 33679; and
WHEREAS, the Agreement furthers the goals of the CDC set forth in the Implementation
Plan as it will facilitate the development of the West Covina Redevelopment Project Area and
the City by developing an underutilized property, eliminating blight, mitigating hazardous
materials, and protecting environmental habitat; and
Resolution No. 2006-60
June 29, 2006
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Agreement and believes that the redevelopment of the Site pursuant thereto .is in the
best interests of the City of West Covina and the health, safety, and welfare of its residents, and
in accord with the public purposes and provisions of applicable state and local laws and
requirements.
is NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West
Covina as follows:
SECTION 1. The City Council previously adopted an Environmental Impact Report for
the development of the Sports Park on October 17, 2000 and a Supplemental Environmental
Impact Report on November 18, 2003.
SECTION 2. The City Council finds and determines that, based upon substantial
evidence provided in the record before it, that:
1.That the buildings, facilities, structures, or other improvements are of benefit to the
Merged Project Area and to the City Wide Project Area and the immediate
neighborhood in which the project is located because the Sports Park will provide
needed recreational facilities to children and adults in a broad area of the City. The
Sports Park is located within the Merged Project Area and within 'Amile of the City
Wide Project Area. It is located near the intersection of two major streets, and is
conveniently accessible to the residents of the two project areas.
2 No other reasonable means of financing the buildings, facilities, structures, or other
improvements, are available to the community because the Property is a vacant, hilly,
underutilized property which is difficult to develop because of financial and
environmental constraints. The Property is subject to habitat restrictions for the
California gnat catcher, hazardous materials monitoring restrictions and grading and
drainage restrictions caused by the proximity to the BKK hazardous materials landfill.
Because of these physical and environmental restrictions, private development and
financing of the Property is not feasible. Neither the City nor the CDC has sufficient
budgetary capacity to develop the Property without the use of the tax increment
financing proposed by the Reimbursement Agreement.
3.The payment of funds for the acquisition of land or the cost of buildings, facilities,
structures, or other improvements will assist in the elimination of one or more
blighting conditions inside the project area. The Property is blighted because it is
vacant underutilized land which has been subjected to illegal grading, hazardous
materials migration, and various land use and environmental restrictions. These
blighting conditions will be removed by the development of the Sports Park through
remedial grading, hazardous materials removal and mitigation, and hazardous
materials monitoring.
4.The development of the Sports Park is consistent with the implementation plan adopted
pursuant to Section 33490 because the Big League Dreams Sports Park is a
specifically identified project within the Implementation Plan. The Sports Park
project will also aid in the elimination of inadequate water, sewer and storm drainage
systems. The project will assist with the cleanup and remediation of properties
that are adversely affected by contaminated soils and/or hazardous wastes.
•SECTION 3. The City Council hereby approves the Agreement and authorizes and
directs the Mayor to execute the Agreement on behalf of the City in substantially the form as
presented in Exhibit A. A copy of the Agreement when executed shall be placed on file in the
office of the City Clerk. The City Manager, or his designee, is authorized to implement the
Agreement and take all further actions and execute all escrow documents and other documents
which are necessary or appropriate to carry out the Agreement.
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Resolution No. 2006-60
June 29,2006
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
•
APPROVED AND ADOPTED on this 29`s day of June 2006.
Mayor Stev He ert
ATTEST
City Clerk Laur e Carrico
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a special meeting thereof held on the 29 h day of June 2006, by the following vote
of the City Council:
AYES: Lane, Sanderson, Touhey, Herfert
NOES: Hernandez
ABSTAIN: None
ABSENT: None
City Clerk L4urie Carrico
APPROVED AS TO FORM:
Ci Attorneyk6o14 Alvarez-Glasman
E
Exhibit A
• REIMBURSEMENT AGREEMENT
(Big League Dreams)
This Reimbursement Agreement, dated as of (the "Agreement"), is
entered into by and between the Community Development Commission of the City of West
Covina, a public body, corporate and politic, duly organized and existing under the Constitution
and laws of the State of California (the "CDC"), and the City of West Covina, a California
municipal corporation, duly organized and existing under the Constitution and laws of the State
of California (the "City").
WHEREAS, The CDC is the owner of certain real property consisting of approximately
27 acres located 2100 S. Azusa, West Covina, CA (the "Property").
WHEREAS, the Property was formerly owned by BKK Corporation and is immediately
adjacent to the site of the BKK Landfill which is a Class I and Class H landfill which accepted
the disposal of toxic wastes for many years.
WHEREAS, the City desires to construct a publicly owned sports and recreation center
on the Property (the "Sports Park"), but is unable to obtain sufficient funds for the financing and
construction of the Sports Park, either through private or public financing methods.
WHEREAS, the City of West Covina Community Development Commission (the
"CDC") is engaged in activities necessary to carry out and implement the Redevelopment Plans
for the West Covina Merged Redevelopment Project Area and the City Wide Project Area.
('Project Areas")
WHEREAS, in order to carry out and implement such Redevelopment Plan the CDC
proposes to convey the Property to the City and to contribute certain construction and debt
service costs to the City for the development of the Sports Park.
WHEREAS, the CDC, under Section 33445 of the California Health and Safety Code
("Section 33445"), is authorized to make reimbursements and expenditures to the City for the
cost of the installation and construction of public capital improvements initially paid for by the
City (such as the Sports Park) with the consent of and upon the making of certain determinations
by the City Council.
WHEREAS, the City and the CDC have made the findings required by Section 33445 in
order for the Agency to make the reimbursements and expenditures contemplated by this
Agreement.
WHEREAS, the CDC desires that the CDC shall reimburse and expend funds to the City
for the cost of planning, constructing and financing the Sports Park.
NOW, THEREFORE, for and in consideration of the premises and the material
covenants hereinafter contained, the parties hereto hereby formally covenant, agree and bind
• themselves as follows:
• SECTION 1. Expenditures and Reimbursement of the Cost of the Sports Park; Interest.
The CDC shall expend funds and reimburse the City an amount not to exceed the full cost for
planning, constructing and financing the Sports Park as more specifically set forth on Exhibit
"A" attached hereto, together with interest thereon from the date of this Agreement at the rate of
six percent (6%) per annum.
•
SECTION 2. Timing and Source of CDC Payments. The payments to be made by the
CDC under Section 1 hereof shall be made by the CDC annually. In the event the CDC does not
have sufficient revenues available to make the payments in the amounts specified in this Section
2, the unpaid amounts will continue to accrue interest as set forth herein. Any failure on the part
of the CDC to pay the amounts specified in this Agreement due to insufficient revenues being
available therefore shall not constitute a default under this Agreement.
SECTION 3. Effective Date. This Agreement shall become effective as of the date first
set forth above.
SECTION 4. Further Assurances. The CDC and the City agree to adopt, make, execute
and deliver any and all such further resolutions, instruments, and agreements as may be
necessary or desirable to carry out the intention or to facilitate the performance of this
Agreement.
SECTION 5. Amendment. This Agreement may be amended only by means of a written
amendment duly executed by the CDC and the City. The CDC and the City hereby agree not to
amend this Agreement in any manner that would adversely affect the interests of holders or
owners of any CDC obligations secured by and payable from Tax Increment Revenues.
SECTION 6. Partial Invalidity. If any part of this Agreement shall for any reason be held
to be illegal, invalid, or unenforceable, such holding shall not affect the validity of the remaining
portions of this Agreement. The CDC and the City hereby declare that they would have adopted
this Agreement and each part hereof irrespective of whether any one or more parts of this
Agreement may be held illegal, invalid or unenforceable.
SECTION 7. Execution. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original but all together shall constitute but
one and the same agreement.
IN WITNESS WHEREOF, the CDC and the City have caused this Tax Increment
Reimbursement Agreement to be executed by their respective officers thereunto duly authorized,
all as of the day and year first above written.
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•
Date:
Approved as to form:
General Counsel
Date:
Approved as to form:
City Attorney
0
COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF WEST
COVINA
LN
Executive Director
Attest:
Commission Secretary
CITY OF WEST COVINA
By:
City Manager
Attest:
City Clerk
• Exhibit "A" of Reimbursement Agreement
L
SUMMARY OF EXPENDITURE OF TAX INCREMENT FUNDS
FOR PUBLICLY OWNED LAND AND BUILDINGS
Pursuant to California Health and Safety Code Section 33445 and 33679 the Community
Development Commission of the City of West Covina ("CDC') proposes to expend tax
increment funds received pursuant to Health and Safety Code Section 33670(b) to procure land
and buildings for the development of a sports complex to be owned by the City of West Covina.
a. The estimated amount of the expenditure of tax increment funds consist of
1. The cost of CDC owned land donated to the City of West Covina in the amount of
$868,200.
2. Costs of construction of the sports complex contributed by CDC in the amount of $13.1
million.
3. The present value of the cost of bond debt service for construction costs in the amount of
$14.4 million.
b. The following supports the CDC use of tax increment funds for this project:
1. The development of the sports complex will be a significant benefit to both the West
Covina Merged Project Area and the Citywide Project Area. By creating a new
recreational center with limited impacts on a nearby habitat area, the CDC is putting to
productive use property that has limited use potentials given the restrictions on use
related to its location. This project will also act as a catalyst to spur economic
development to the entire BKK site and the surrounding areas by virtue of it becoming a
destination attraction.
2. This site has been very difficult and costly to develop due to various mitigation measures,
conditions of approval, and extensive grading and infrastructure improvements. Since
the revenues generated by the project are insufficient to pay for the total, cost of
development of the project, that there is no other reasonable means of financing the
construction without the inclusion of tax increment funds.
3. The development of this project will assist in the remediation of blight by adding
recreation and park development to a property adjacent to a Class III landfill and
proximate to a Class I hazardous landfill. This land has been vacant for a number of
years as a result of environmental concerns and contamination and inadequate public
improvements.
El
. 4. The development of the Sports Park is consistent with the implementation plan adopted
pursuant to Section 33490 because the Big League Dreams Sports Park is a specifically
identified project within the Implementation Plan. The Sports Park project will also aid
in the elimination of inadequate water, sewer and storm drainage systems. The project
will assist with the cleanup and remediation of properties that are adversely affected by
contaminated soils and/or hazardous wastes.
I*
c. The redevelopment purposes for which such taxes are being used to pay for the land and
construction of such publicly owned building are:
1. Elimination and amelioration of certain environmental deficiencies and continued
assistance with the cleanup and remediation of properties affected by contaminated soils
and hazardous waste.
2. The conservation, rehabilitation and redevelopment of blighted areas.
3. Achievement of an environment reflecting a high level of concern for urban landscape
design.
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